In May this year, the purchasing managers' index (PMI) for the Chinese steel sector was 49.2 percent, down 1.3 percentage points from April, as announced by the China Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
Moreover, in May, the new orders index was 46.8 percent, up 2.4 percentage points lower than in April.
In May, the new export orders index amounted to 48.6 percent, which is 2.1 percentage points higher than in April. Steel demand in some emerging markets improved this month.
In May, the production index for the Chinese steel sector was 48.7 percent, remaining stable compared with April.
In May, the finished steel inventory index was 43 percent, up 0.7 percentage points from April.
In May, the raw material inventory index fell to 46.0 percent, down 4.0 percentage points from April, signaling that raw material consumption was occurring faster than inventory replenishment.
Meanwhile, the raw material purchasing volume index in May was 48 percent, up 1.6 percentage points from April but still below 50 percent.
As for June, steel demand will slow amid traditional off-season due to the rainy season in southern China and high temperatures in northern China. Construction activities will be negatively affected
